All else being equal, the first tranche of the $1.13 billion cocoa syndicated loan will arrive in the Bank of Ghana’s account tomorrow, October 26, 2022.
Joy According to business sources at the Finance Ministry, the consortium of banks is expected to contribute $790 million.
This is expected to boost the Ghana cedi’s value against the US dollar.
The funds used to finance the purchase of cocoa beans will also help the country’s balance of payments.
At a stakeholder meeting with business associations and President Akufo-Addo yesterday, Finance Minister Ken Ofori-Atta confirmed the inflows of the cocoa syndicated loan.
The second tranche of approximately $340 million, which will be distributed over three months, will be received between November 2022 and February 2023.
The facility would have a 1.75% interest rate.
The facility’s initial mandated lead arrangers were Standard Chartered Bank, Coöperatieve Rabobank, Industrial and Commercial Bank of China (ICBC), MUFG Bank Ltd, Natixis, and Ghana International Bank plc.
Bank of China Limited’s London branch became the facility’s Senior Mandated Lead Arranger, while DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, and the Arab Bank for Economic Development in Africa (“BADEA”) became Mandated Lead Arrangers.
Ecobank has joined as an Arranger. The OPEC Fund, United Bank for Africa PLC, Ahli United Bank B.S.C., and Federated Hermes Inc were appointed as Lead Managers, with AfrAsia Bank Limited, Citibank N.A, Absa Bank Ghana Limited, and GCB Bank Plc joining as Managers.
COCOBOD and syndicated lending programs
Since the 1992/93 crop season, the Ghana Cocoa Board has consistently and successfully obtained receivables-backed syndicated loans from the international money market to finance its cocoa purchases through the pre-export syndicated finance facility.
The facility, the largest soft commodity transaction in Sub-Saharan Africa, has aided the regulator.
